Health insurer UnitedHealth’s (UNH) stock has declined 11% over the past month and is down 36% year-to-date. Despite the company’s better-than-expected Q3 earnings and improved full-year outlook, UNH stock remains under pressure due to concerns about high medical costs in its Medicare Advantage (MA) plans and the Department of Justice (DOJ) probe. Amid this scenario, Wall Street is cautiously optimistic about UnitedHealth stock, with several analysts hopeful about the company’s turnaround and long-term growth prospects.
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Analysts’ Views on UNH Stock
Reacting to the Q3 print, Bernstein analyst Lance Wilkes increased the price target for UnitedHealth stock to $440 from $433 and reiterated a Buy rating. The analyst expects MA and Medicaid margins to recover across the sector following MA rate cuts, fewer competitors, and redeterminations. Wilkes expects pricing discipline to return in MA and Optum Health, which could impact near-term growth but improve margins faster. Overall, Wilkes believes that UNH stock is trading at attractive levels, given his expectation of “outsized” recovery in earnings per share (EPS) growth over the next four years.
Likewise, RBC Capital analyst Ben Hendrix increased the price target for UNH stock to $408 from $286 to reflect recent industry multiple expansion and reiterated a Buy rating. The 4-star analyst noted management’s confidence about its pricing and MA plan exits driving improved margins next year. UNH recently announced its plan to exit more than 100 MA plans. Notably, management views 2026 consensus EPS of $17.59 (at the time of the earnings call) as a good “jumping off point.”
Given the expectation of margin recovery accelerating in 2027, Hendrix expects UNH’s EPS growth to be near the low end of its long-term annual growth target of 13% to 16%.
In contrast, Deutsche Bank analyst George Hill downgraded UNH stock to Hold from Buy and lowered the price target to $275 from $333. The 4-star analyst contends that UNH’s near-term valuation has largely priced in the expected recovery in 2027 and 2028 earnings. Moreover, Hill noted that there is not much clarity about the turnaround of the Optum Health unit, which is the most impacted business.
Is UNH a Good Stock to Buy?
Despite short-term pressures, most analysts remain optimistic about UnitedHealth’s long-term growth story.
Currently, Wall Street has a Moderate Buy consensus rating on UnitedHealth stock based on 17 Buys, three Holds, and two Sell recommendations. The average UNH stock price target of $386.27 indicates 19.1% upside potential.
